President Donald Trump\u2019s housing chief has strongly criticized Federal Reserve Chair Jerome Powell, labeling him a \u201cmaniac\u201d and \u201cderanged,\u201d while blaming persistent high interest rates for widespread financial hardship among Americans. This fiery characterization comes as economic anxiety continues to grip the country, with housing costs climbing to levels not seen in decades.<\/p>\n
The remarks came from Bill Pulte<\/a>, the director of the Federal Housing Finance Agency, which oversees Fannie Mae<\/a>, Freddie Mac<\/a>, and the Federal Home Loan Banks, calling into ResiDay<\/a>, a residential real-estate conference hosted by ResiClub<\/a>, the news and research outlet cofounded by former Fortune<\/em> editor Lance Lambert<\/a>. <\/p>\n Pulte, whose family is one of the biggest names<\/a> in corporate homebuilding, did not mince words about the Fed chair. <\/p>\n \u201cHe\u2019s really a maniac,\u201d Pulte said when asked about his view on the impact of high interest rates on the mortgage market. \u201cWe\u2019ve really got to get a good new Federal Reserve chair. I\u2019m very confident that the president will pick somebody great. You know, I think Powell has just totally let it go to his head.\u201d <\/p>\n Pulte argued \u201cit\u2019s sad\u201d and Powell is \u201cnot looking at the data\u201d despite his reputaton as a \u201cstraight shooter.\u201d The data shows, according to Pulte, \u201cinflation is way lower\u201d and high mortgage rates are \u201creally hurting a lot of people.\u201d He added the climate in Washington, D.C. is something of a bubble. <\/p>\n \u201cWhen I\u2019m there, it\u2019s like this little vacuum, and you get caught in it,\u201d he said. \u201cAnd I think some of these guys, they go to D.C., and they just, they lose their minds.\u201d <\/p>\n The FHFA director argued Trump has a clear vision: \u201cMaybe it\u2019s because he goes out of town often,\u201d but \u201cthese other people, like Powell, they\u2019ve lost their mind.\u201d <\/p>\n He circled around by stressing high interest rates \u201care really, really hurting people.\u201d The remarks underscore a growing frustration among Trump-aligned Republicans who argue the central bank\u2019s aggressive rate hikes\u2014and the slow recent pace of its rate cuts\u2014have stifled growth and made homeownership less attainable . <\/p>\n Since mid-2022 and the highest rate of inflation in 40 years, the Fed implemented sharp increases in the benchmark interest rate, which rippled through the housing sector, before relenting in mid-2025, cutting rates twice to date<\/a>. Much of the Fed\u2019s thinking was affected by what Powell called a \u201clow-hire, low-fire<\/a>\u201d job market, in which layoffs are low, but so is hiring, especially for recent college graduates and minorities. <\/p>\n The longest government shutdown in history<\/a>, grinding on as Pulte was speaking at ResiDay, has actually deprived the market and the central bank of fresh data on the state of the economy, forcing many to turn to alternate measures. But to Pulte\u2019s point, mortgage rates have remained stubbornly high, still over 6%, a contrast to the sub-3% rate enjoyed by the vast majority of mortgage holders in the national housing market. <\/p>\n \u201cMany homeowners are reluctant [to] put their homes on the market and give up the low mortgage rates they already have,\u201d\u00a0Berkshire Hathaway<\/a>\u00a0HomeServices said in late October about this so-called \u201clock-in effect.\u201d Warren Buffett\u2019s portfolio company said that: \u201cTo them, high price gains won\u2019t mitigate their ability to pay more for another home at significantly higher interest rates.\u201d <\/p>\n And there is widespread evidence of pain in the housing market. Recent data show home affordability at its lowest point in decades. Earlier this week, the National Association of Realtors<\/a> found the average age of the first-time homebuyer had crossed 40 years old<\/a> for the first time. <\/p>\n Tensions between Trump and Powell are not new. Trump himself sparred repeatedly with Powell during both his current presidential term and during his prior stint in office, repeatedly calling for lower rates and nicknaming the Fed chair as \u201ctoo late.\u201d Pulte said Powell\u2019s looks are deceiving: \u201cHe looks like this calm, silent guy, but he\u2019s deranged.\u201d <\/p>\n Pulte also talked vaguely about his plans for Fannie Mae and Freddie Mac, quasi-utilities that have been under government conservatorship<\/a> since the Great Financial Crisis of 2008. Saying \u201cwe hold all the cards,\u201d Pulte said he thinks Fannie and Freddie \u201cwill probably take ownership in different companies by virtue of companies offering them equity in exchange for Fannie and Freddie doing smart business constructs with them,\u201d in a similar way to the government\u2019s unprecedented investment into Intel<\/a>. <\/p>\nPain in the mortgage market<\/h2>\n
Changes for Fannie and Freddie?<\/h2>\n